European Shares Set To Extend Gains As Fed Rate-cut Bets Surge

(RTTNews) - European stocks may open higher on Wednesday, though trading activity is likely to remain somewhat subdued due to the U.S. Thanksgiving Day holiday on Thursday.

U.S. equity futures ticked higher on surging Fed rate-cut bets, with the chances of a December cut rising from 50.1 percent on November 18 to 84.3 percent on November 25, according to the CME FedWatch Tool.

Later in the day, reports on durable goods orders and weekly jobless claims along with FOMC members' speeches may influence market bets on a December rate cut.

The release of the Federal Reserve Beige Book may also shed further light on the state of economic activity and employment.

Elsewhere, U.K. Chancellor Rachel Reeves is expected to increase a range of taxes when she announces her Budget.

Asian stocks extended their gains into a third day, with tech-heavy Nikkei and Kospi leading regional gains.

Gold rose about 1 percent as the dollar eased and the yield on the benchmark U.S. 10-year slipped to below 4 percent for the first time in almost a month on Fed rate-cut bets.

Oil recovered from a one-month low after industry data indicated a decline in U.S. inventories.

Overnight, U.S. stocks rose for a third consecutive session as new data helped reinforce bets that the Federal Reserve will cut interest rates in December.

Retail sales increased less than expected in September, while wholesale inflation picked up from a month earlier on higher energy and food costs.

Consumer confidence lost momentum in November, reaching its lowest level in seven months because of anxiety about jobs and the economy.

ADP reported rising weekly layoffs, with losses amounting to 13500 in each of the past four weeks.

Meanwhile, Treasury yields fell after White House National Economic Council Director Kevin Hassett emerged as the front-runner to serve as the next Fed chair.

The Dow jumped 1.4 percent, the S&P 500 climbed 0.9 percent and the tech-heavy Nasdaq Composite gained 0.7 percent.

European stocks closed on a firm note on Tuesday amid signs of progress in talks to end the war in Ukraine.

The pan European Stoxx 600 advanced 0.9 percent. The German DAX rallied 1 percent, while France's CAC 40 and the U.K.'s FTSE 100 both surged by 0.8 percent.